A Short Guide To Investing In Classic Cars

There is nothing quite like the feeling of owning your favorite classic car. The nostalgic pleasure you will get from showing off your car and driving it down the road is simply hard to beat. However, it's important to remember that a classic car is also an investment. With some helpful guidelines, you should be fully prepared when looking to make this purchase.

Research before you buyA classic car might look good in the ad, but make sure you know what's wrong with it before you write a check. The older the car, the more issues it can have. Finding parts and restoration services for older vehicles isn't always a straightforward process. In some cases, restoring the vehicle may mean that you need to manufacture parts to get it running again.

Have the vehicle inspectedA pre-purchase inspection by a professional is worth its weight in rusted steel. If you are not a vehicle expert or a mechanic, enlist the services of someone who knows how to inspect a car from floorboard to fender.

Research the appreciation potential

It's every classic car owners dream to find a vehicle that once restored will be worth a considerable chunk of change. Research the market and see what the restored vehicle is selling for to determine how much you can make from investing in a restoration. The goal is to find a $5,000 junker that will cost $10,000 to restore, but can then be sold for $100,000. This restoration leaves you with an $85,000 profit and not a hole in your wallet.Keep the classic car as original as possibleKeeping the vehicle as original as possible is important because you don't want to tinker too much with original fabrics, paint schemes or components. While you may need to upgrade for safety and regulatory compliance, try and restore the vehicle to as close to showroom condition as possible.

Know when to let go

Sometimes a classic car will develop a host of issues that makes it too expensive to continue owning. If you find yourself owning a "money pit", you should get rid of it. This “money pit” shouldn't affect your ability to enjoy the other vehicles within your collection.Keep toys and investments separate It can be tempting to want to drive your classic car all over the place. However, the miles you put on this vehicle can have a negative impact on the market value.Know when to sell A classic car is an investment. While you will get attached to your car, remember that when the market value rises and is peaking, that's the time to hand over the keys to another investor.

Bill’s Backyard Classics has been in the classic car business for quite a while now. We invite you to contact us at (808) 373-8194 with your questions or send us an email. You can also stop by 5309 S. Washington St. in Amarillo, Texas to see our classic car collection.